REPORT TITLE:
Unfair and Deceptive Practices


DESCRIPTION:
Prohibits the offering of a prize in a drawing or sweepstakes
without a written and conspicuous disclosure that some or all of
the prizes may not be awarded and indicating the dates on which a
winner will be determined.  Prohibits the offering of real
property as a prize.  (SB236 HD1)   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO UNFAIR AND DECEPTIVE PRACTICES. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 481B-1.6, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]481B-1.6[]]  Offers of gifts or prizes; unlawful.(a)
 
 4 It shall be an unlawful practice under this chapter for any
 
 5 person to enforce or attempt to enforce an agreement to purchase,
 
 6 lease, or rent a consumer product if the offer to sell, lease, or
 
 7 rent was conducted in a manner not in compliance with the
 
 8 requirements of this chapter.
 
 9      (b)  It shall be an unlawful practice under this chapter for
 
10 any person to offer a gift, prize, or award by means of written
 
11 notice sent through the mail or by telephone with the intent to
 
12 sell, lease, or rent a consumer product, or to initiate the sale,
 
13 lease, or rental of a consumer product when, at the time of the
 
14 offer, the consumer product and all the material terms of the
 
15 sale, lease, or rental transaction, including the price,
 
16 handling, shipping, delivery, or any other fee, are not clearly
 
17 and conspicuously disclosed.
 
18      (c)  It shall be an unlawful practice for any person to
 
19 offer a gift, prize, or award by means of written notice sent
 
20 through the mail or by telephone with the intent to receive a
 

 
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                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1 payment of any money when, at the time of the offer, all of the
 
 2 material terms of the transaction, including handling, shipping,
 
 3 delivery, or any other fee, are not clearly and conspicuously
 
 4 disclosed and the consumer is requested to:
 
 5      (1)  Further the transaction by calling a 900 number or "pay
 
 6           per call"; or
 
 7      (2)  Send payment of any money to receive or redeem the
 
 8           prize.
 
 9      (d)  Any offer of a prize made by means of written notice
 
10 sent through the mail or by telephone shall include:
 
11      (1)  Information on the odds of being able to receive the
 
12           prize or if the odds are not calculable in advance, the
 
13           factors used in calculating the odds;
 
14      (2)  A statement that no purchase or payment is required to
 
15           win a prize or to participate in a prize promotion; and
 
16      (3)  Instructions on how to participate without purchase or
 
17           payment including an address or toll-free telephone
 
18           number to which a consumer may write or call for
 
19           information on how to participate. 
 
20      (e)  It shall be an unlawful practice and a violation of
 
21 this chapter for any person, in any contest or sweepstakes in
 
22 which the winner or winners are to be determined by a drawing or
 
23 some other method based on an element of chance:
 

 
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                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      (1)  To promote a contest or sweepstakes in which some or
 
 2           all of the prizes may not be awarded, or to fail to
 
 3           award all prizes or awards offered, unless the person
 
 4           makes the following disclosures to each offeree in
 
 5           writing and in a conspicuous manner prior to the
 
 6           acceptance of the offeree's entry:
 
 7           (A)  That some or all of the prizes may not be awarded
 
 8                to a winner or winners unless all prizes will be
 
 9                awarded; and
 
10           (B)  The date or dates on which a determination of
 
11                winners will be made; or
 
12      (2)  To offer a prize of real property."
 
13      SECTION 2.  Statutory material to be repealed is bracketed.
 
14 New statutory material is underscored.
 
15      SECTION 3.  This Act shall take effect upon its approval.